Delegated Contract Process for Federal Construction Contracts

Delegated Contract Process State Aid for Local Transportation (SALT) prepares the DCP Agreement, which is required for agencies administering a Federal Construction Contract. The DCP Agreement covers all Federally funded Construction Contracts with State Aid while the agreement is active. Is valid until there is either a change or one party cancels the contract. Approval of each construction project is required first Prior approval must be received before expenses are incurred or they will not be reimbursed. Federal Funds are released after the expense is incurred. Sponsoring agencies must be financially able to make the contract payments. 11/18/2018

DCP- SAF Web Site and Payment Requests The State Aid Finance web site DCP Processing SAAS Reports Delegated Contract Process (DCP) Payment Request Many DCP Payment Requests and State Aid Payment Requests need to be revised Federal Funds must be maximized on a project. If Federal funds are not maximized, this delays your payment 11/18/2018

DCP - FCRB Federal County Road and Bridge (FCRB) is the system System where the DCP Payment Requests are processed. FCRB has a “Bid Cap”. Not a true cap, but it is where the system stops paying. The “Project Cap” is the total Federal Funds available if you have sufficient construction costs. 11/18/2018

Optional Tagline Goes Here | mn.gov/websiteurl DCP - FCRB FEDERAL FUND CAP BID CAP 11/18/2018 Optional Tagline Goes Here | mn.gov/websiteurl

DCP – Bid Cap Review the Participation Distribution If the Bid Cap is less than the Federal Fund Cap Check the actual eligible costs of the project at the time you final the project If the actual eligible costs are greater than the bid cap in FCRB An encumbrance increase must be submitted Example On the Participation Distribution the Federal Cap is $800,000.00 – but the Federal Amount at Bid (or Bid Cap) is $718,063.20 The system stops paying at this amount unless an encumbrance increase is submitted 11/18/2018

DCP – Encumbrance Increase for Bid Cap If the eligible costs are more than the Bid Cap Enough in extra costs need to be submitted to encumber the additional federal funds Example If the total eligible costs are $998,000.00 * 80% = $798,400.00 Bid Cap is $718,063.20 Then $80,336.80 more needs to be encumbered Documents needed for an encumbrance increase submittal Supplemental Agreements Change Orders Work Orders Overrun When completing supporting documentation, indicate the category on each document. 11/18/2018

DCP – Encumbrance Increase for Bid Cap (Continued) If the costs are split between categories It must be documented clearly for each category in either Dollars OR Percentage All documents must be signed off by the DSAE The encumbrance increase can be sent in before the final or with the final If the encumbrance increase is sent in with the final payment Do not use the numbers on the DCP Final to complete your State Aid Payment Request Use the actual costs to complete your State Aid Payment Request 11/18/2018

DCP – Payment Requests and Categories The numbers on the DCP Payment Request can be used to complete the State Aid Payment Request If all of the available federal funds were set–up at the beginning of the project OR If all of the federal funds have been paid All projects with multiple categories Must attach a breakdown of costs by category Must be in the format of the original bid estimate for both partial and final payments No payment request will be processed without this documentation 11/18/2018

DCP – Partial and Final Payment Requests DCP Partial Payment Requests Email to Amie Wunderlich And Check with your DSAE if they want a copy DCP Final Payment Requests Must be sent to the DSAE with required documentation 11/18/2018